Share Buybacks

Share Buybacks: What You Need To Know Share buybacks are the most misunderstood way for a corporation to return cash to shareholders. Misunderstanding surround share repurchases is unfortunate.Many investors analyze a variety of financial ratios and metrics, but fail to look at share repurchases. It shouldn’t be this way.A definition of share buybacks is below: Share buybacks (also called share repurchases or stock repurchases) are when a publicly traded business uses cash to buy back some of its outstanding shares. Share buybacks reduce the amount of shares outstanding.This is good for the…

Visa Stock Buy

If you’re a reader of my blog, you know that I typically invest in companies with dividend yields above 2%. Visa Stock doesn’t fit this investment strategy. I do on occasion take chances on riskier investments regardless of yield, or in companies with a fantastic growth opportunity regardless of yield. In this case it’s the latter. I bought 25 shares of Visa Stock at a per share price of $79.11. The total invested amount of this purchase is $1,977.75.Visa Stock pays a very low yield of 0.69%. There’s not much near-term dividend income with this…

Earning on Earnings Releases

Are You Earning on Earnings Releases? April 11th is the earnings release date for Alcoa, Inc. This is considered to be the official start of the earnings season. Regardless of the earnings impact on the markets, one of the core concepts we teach at Online Trading Academy is the preservation of capital and the proper assessment of risk for any trade. The purpose of this article is not to teach you how to trade before an earnings release, that is extremely risky.  Instead, the purpose of this article is to…

Profit vs Loss Ratio

Strategic Investing, How to Setup a Profit vs Loss Ratio A profit vs loss ratio is something that can by itself help you succeed investing in the stock market. They work wonders for new traders, and are used by professionals as well. This article will explain what a profit vs loss ratio is, how to set one up, and how to stay disciplined to utilize it effectively. What They Are A profit vs loss ratio is a plan that you put in place to limit your downside exposure on all…

How to Read Stock Tables

Every investor needs to know how to read stock tables their find in any financial paper and which will look something like the image below: Columns 1 & 2: 52-Week High and Low – These are the highest and lowest prices at which a stock has traded over the previous 52 weeks (one year). This typically does not include the previous day’s trading. Column 3: Company Name & Type of Stock – This column lists the name of the company. If there are no special symbols or letters following the…

Stock Tips For Investment Success

60 Stock Tips For Investment Success We just finished up William O’Neil’s book, 24 Essential Lessons for Investment Success, and found it to be a great resource of stock tips for beginners. There are tons of great investment tips which were highlighted at the end of each chapter, and to summarize the book this post we will mention 60 of them. The best thing about the book in our opinion was the simplicity behind the material. Will O’Neil always seems to do a good job of making the read easy and…

Different Types Of Stocks

All you need to know about the different types of stocks. There are two main different types of stocks: common stock and preferred stock. Common Stock  Common stock is, well, common. When people talk about stocks they are usually referring to this type. In fact, the majority of stock is issued is in this form. We basically went over features of common stock in the last section. Common shares represent ownership in a company and a claim (dividends) on a portion of profits. Investors get one vote per share to elect the boardmembers, who…

10 Trading Secrets Few Investors Know

Here yo have 10 Trading Secrets Few Investors Know. When I first started trading at the ripe age of 15 years old, it was because I had lost over $3,000 of my roughly $5,000 in life savings from mowing lawns in the dotcom crash. The mutual funds my parents had invested me in had plummeted in value. As a result of this traumatic experience, I wanted to take charge of my financial future and not leave it in the hands of an actively managed mutual fund. With no concept of trading…

What Are Stocks?

Let’s talk about “What are stocks?” The Definition of a Stock What are stocks? Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the company’s assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity, or stock, it all means the same thing. Being an Owner Holding a company’s stock means that you are one of the many owners (shareholders) of a company and, as such, you have a claim (albeit usually very small) to…